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CHAPTER THREE
THE E-MARKETING PLAN
Multiple Choice
1. The ________ is a blueprint, or roadmap, that links the firm’s e-business strategy (e–
business models) with technology-driven marketing strategies and details for
implementation through marketing management.
a. e-marketing plan
b. business model
c. situation analysis
d. strategic plan
2. The two most common types of e-marketing plans are known as the venture capital e-
marketing plan and the ________.
a. Nike plan
b. tablecloth plan
c. strategic plan
d. napkin plan
3. The equivalent of the napkin plan used by a large company is known as the _________.
a. Nike plan
b. just-do–it, bottom-up plan
c. venture capital plan
d. strategic plan
4. By far the smallest source of capital for entrepreneurs is ________.
a. banks
b. friends and family
c. angel investors
d. venture capitalists
5. When selecting an e-business investment venture capitalists are looking for a well
composed business plan and ________.
a. sufficient capital
b. a great location
c. a good team of people to implement it
d. government subsidies
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6. A well composed business plan should contain enough data and logic to prove that
________.
a. the e-business idea is solid
b. the entrepreneur has some idea of how to run the business
c. the entrepreneur has some idea of the business’ benefits, costs, and competition
d. all of the above
7. Venture capitalists typically expect to ________.
a. get their money out of an investment immediately
b. get their money out of an investment within a few years as part of an exit plan
c. take over ownership of their investments
d. see a return on every investment they make
8. An initial public offering (IPO) of a company is viewed generally by invested venture
capitalists as a(n)________.
a. golden exit plan
b. threat to his/her investment
c. chance to gain a higher percentage of ownership
9. Situation analysis should review the firm’s ________.
a. environment and SWOT analysis
b. existing marketing plans
c. e-business objectives, strategies and performance metrics
d. all of the above
10. A(n) ________ is used to identify target markets.
a. SWOT Analysis
b. Balanced Scorecard
c. Marketing Opportunity Analysis (MOA)
d. Environment, Strategy and Performance (ESP)
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11. The purpose of a(n) ________ is to assist in forecasting segment profitability as well as to
find competitive advantages to exploit in the online market.
a. situation analysis
b. supply analysis
c. evaluation plan
d. a budgeting plan
12. In order to decide how online prices will compare to offline equivalents, marketers must
consider ________.
a. differing costs of sorting and delivering
b. competitive concerns
c. market concerns
d. all of the above
13. The strategy of applying different price levels for different customers or situations is
referred to as ________.
a. online bidding
b. dynamic pricing
c. direct marketing
d. agent e-business models
14. Formulating an objective should take into consideration all of the following elements
except _________.
a. task (what is to be accomplished)
b. measurable quantity (how much)
c. time frame (by when)
15. A graphical tool known as a(n) ________ can help marketers better understand the
implementation requirements for their plans.
a. product matrix
b. objective-strategy matrix
c. business model
d. evaluation plan
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16. In the fifth step of the e-marketing planning process ________ tactics are especially
important to e-marketers because information technologies are especially adept at
automating these processes.
a. business process
b. budgeting
c. information gathering
d. evaluation plan
17. During which of the following steps will marketers closely monitor actual revenues and
costs to make sure that results are on track for accomplishing the objectives?
a. situation analysis
b. formulating objectives
c. plan implementation
d. strategy formulation
18. Firms consider monies saved through internet efficiencies ________.
a. soft revenues
b. difficult currency
c. profits
d. mark-ups
19. All of the following are various types of e-marketing costs incurred by site developers
except ________.
a. marketing communication
b. salaries
c. real estate costs
d. site design
20. Once the e-marketing plan is implemented, its success depends on ________.
a. funding
b. planning
c. continuous evaluation
d. formulating objectives
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True/False
21. The “paper plan” is a quick method used by entrepreneurs to communicate their ideas to
clients, partners, or investors.
a. True
b. False
22. The “binder plan” tends to more preferred than the “napkin plan” when presenting an idea
to solicit funding from investors.
a. True
b. False
23. Venture capitalists generally enter an investment with a plan to exit within a few years,
following an initial public offering or significant buyout from a large firm.
a. True
b. False
24. Venture capitalists are generally not concerned with exit plans, such as taking the
company public.
a. True
b. False
25. Strategic refinements are not necessary if marketers create feedback mechanisms in their
e-marketing plans.
a. True
26. Tier one and tier two strategies are interrelated for most companies.
a. True
b. False
27. Tier 2 strategies involve segmentation, targeting, differentiation, and positioning.
a. True
b. False
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28. E-marketing plans must focus on a single objective.
a. True
b. False
29. A strategic plan must identify expected returns from an investment.
a. True
b. False
30. Since intangible benefits of e-marketing are difficult to establish it is often not worth the
added expense to tie a financial figure to these benefits.
a. True
31. The three key environmental factors that affect e-marketing are legal, market-related, and
technological.
a. True
b. False
32. Tier 1 strategies include designing the offer, value, distribution, communication, and
market/partner relationship management strategies.
a. True
b. False
Essay Questions
33. What is meant by a “napkin plan”?
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34. What are the seven steps of the e-marketing plan?
35. In the creation of an e-marketing plan what are the advantages and draw backs of both the
napkin plan and the venture capital plan?
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36. In your own words, what is the argument for the distinction between tiers one and two of
the e-marketing strategies? Make sure to define the elements of each tier.
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37. What are some of the typical objectives of e-marketing plans?
38. What are some of the intangible benefits of e-marketing strategies and how can financial
figures be tied to these benefits?
39. Define dynamic pricing. What are the advantages and disadvantages of using dynamic
pricing?